13th Aug 2015 11:04
LONDON (Alliance News) - Stadium Group PLC Thursday said its shareholders have approved its GBP6.0 million fundraising to pay for the initial consideration for the acquisition of Stontronics.
At the end of July, the company proposed a GBP6.0 million fundraising by way of a placing and pen offer, which shareholders have now approved at a general meeting Thursday.
The structure of the fundraising comprised of a firm placing of 4.5 million shares and a placing and open offer of 913,899 shares, all priced at 110 pence per share.
On Thursday, Stadium Group said it received applications for just under 1.6 million open offer shares, meaning it was over-subscribed through the excess application facility. Therefore it has scaled back the facility, meaning only the original 913,899 shares have been issued.
Stadium Group shares were down 0.4% to 129.00 pence per share on Thursday.
The fundraising will be used to pay the initial consideration for transformer and adaptor manufacturer and distributor Stontronics. Stadium will pay GBP5.5 million in cash for the company, with a further GBP1 million to be paid based on Stontronics hitting future financial targets.
When the deal was signed, Stadium Group said the deal would strengthen its technology offering and will drive synergies and cross-selling opportunities.
By Joshua Warner; [email protected]; @JoshAlliance
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